The Nikkei Average continued to decline slightly. It closed the morning session at 38,055.62 yen (approximately 607 million shares traded), down 54.60 yen (-0.14%) from the previous day.

The US stock market was mixed. The Dow Jones Industrial Average closed at 41,240.52 (+65.44, +0.16%), the Nasdaq closed at 17,725.77 (-152.02, -0.85%), and the S&P 500 closed at 5,616.84 (-17.77, -0.32%). Following the speech by Federal Reserve Chairman Powell at the Jackson Hole meeting, there was continued buying due to expectations of a rate cut. After the opening, the Dow continued to rise as durable goods orders and the Dallas Fed manufacturing activity index exceeded expectations, creating expectations of a soft landing. However, concerns over the situation in the Middle East suppressed gains and the market lost momentum towards the end, although it reached a new record high. On the other hand, the Nasdaq turned to selling due to rising long-term interest rates and the decline of semiconductor stocks such as Nvidia ahead of earnings announcements, resulting in a subdued and mixed performance throughout the day.

Due to the mixed performance of US stocks, the Tokyo market had a directionless start. With the exchange rate stabilizing around 144 yen to the dollar, there were no significant selling pressures observed. The Nikkei Average remained in a standoff around the 38,000 yen level. The market sentiment is cautious as it awaits Nvidia's earnings announcement early on the 29th Japanese time, and trading volume on the prime market remained at 1.5 trillion yen.

Among the stocks adopted for the Nikkei Average, semiconductor-related stocks such as Laser Tech <6920>, Tokyo Electron <8035>, Advantest <6857>, and Screen HD <7735> were sold. In addition, Hitachi <6501>, Disco <6146>, Sumitomo Pharma <4506>, Alps Alpine <6770>, and SoftBank Group <9984> declined.

On the other hand, Yokogawa Electric <6841> was bought due to positive reports from domestic securities companies, and Jtekt <6473> steadily increased its gains. In addition, Nissui <1332>, Marui Group <8252>, JGC Holdings <1963>, Credit Saison <8253>, and Aozora Bank <8304> rose.

In terms of industry categories, other products, electric appliances, textiles & apparels, service industry, and air transportation declined, while mining, pulp & paper, insurance, iron & steel, marine transportation, and transportation equipment rose.

Due to a cautious mood, the afternoon Nikkei Average is likely to remain in a stalemate around the 38,000 yen level, just like the morning session. There is a possibility that buying for interim dividends of August- or February-ending stocks may continue until tomorrow, which is the final trading day for rights acquisition. However, the impact on the index and other indicators will be limited. With the easing of the strengthening of the yen, the market is expected to be colored by the announcement of NVIDIA's earnings report.